1. Utility & Buying Motives

2. Utility
Utility – the added value in economic terms created by the functions of marketing
Form
Place
Time
Possession
Information

3. Form Utility
Involves changing raw materials into usable goods or putting parts together to make them more useful

4. Place Utility
Involves having a product where customers can buy it

5. Time Utility
Having a product or service available at a certain time of year or a convenient time of day

6. Possession Utility Exchange of a product for money
Accepting alternative to cash
Checks
Debit cards
Layaway
Credit cards

7. Information Utility
Involves communication with the consumer

8. Types of Markets
Market – all people who share similar needs & wants and who have the ability to purchase a given product
Consumer Market – consists of consumers who purchase goods & services for personal use
Organizational Market – business-to-business market includes all businesses that buy products for use in their operations

9. Client versus Customer
Customer: a person who purchases goods or services from another
Client: a person or group that uses the professional advice or services of a lawyer, accountant, advertising agency, architect, etc.
The difference between a customer and a client can be rather confusing, and in some instances, both terms may be used to refer to any type of business patron. When a company has ongoing interaction with someone, that person tends to be referred to as a client rather than a customer. The term "client" tends to suggest the need for long-term care and consideration. There are also some industries in which one term is preferred over the other due to the typical way in which people do business.
Difference in Relationship
In general, the difference between a customer and a client is that a protective, ongoing business relationship is formed with a client, but not necessarily with a customer. For example, a customer might walk into a store one time, choose a few items, and make a purchase before leaving. A client, on the other hand, comes back repeatedly to make additional purchases and establishes a long-term relationship with a company. This difference can be subtle, but it is important since many businesses want to establish these long-term associations.
I’ve shortened them to make a point: You don’t want customers any more after reading those definitions. You want clients. You don’t want people who buy from you once because you simply have the “goods” they need right now. You want ongoing relationships with people who use your professional advice and expertise — who buy from you because of how you help them, not what you hand them.
You may think this is splitting hairs; that it’s semantics. But it’s really a mindset. Cultivate relationships so that you become indispensable for what you know (that you can transfer), how you help, and how you make people feel about the interaction. When you do that, you’re building a client base, not a customer list.

10. Customer Buying Motives
Buying motives: reasons a customer buys a product
Rational Motives: conscious, logical reasons for a purchase
Product dependability
Time or monetary savings.
Product quality
Good customer service

11. Customer Buying Motives
Emotional Motives: feelings experienced by a customer through association with a product
Social approval
Fear
Power
Love
Prestige
Patronage Motives: reasons for remaining a loyal customer of a company

12. Routine Buying Decisions
Used for purchased that are made frequently and do not require much thought
Familiar with products

13. Limited Buying Decision
Take more time than routine buying decisions
Associated with a product that is more expensive or is purchased less frequently
Buying jeans

14. Extensive Buying Decisions
Occurs when the consumer methodically goes through all five steps of the decision-making process
Purchasing a car
Not made lightly